As of June 16, the number of wallets containing 10 or more Bitcoin (BTC) has risen to 16.16 million.
These whale wallets now collectively hold 82% of the total Bitcoin supply, signifying a growing confidence among major investors in Bitcoin, especially considering the market changes of the past two years.
An Observable Surge in BTC Whale Wallets
Analysts have noticed a surge in BTC whale wallets, indicating a potentially bullish future for Bitcoin.
According to Santiment, a data analytics firm, the number of whale wallets holding 10 or more BTC has reached levels last seen in June 2021. During this time, Bitcoin's market value surged by 226%.
In addition, the quantity of Bitcoin stored on exchanges has fallen to its lowest level since December 2021.
Major investors commonly opt to hold onto their assets in long-term storage.
š³ Wallets holding 10 or more Bitcoin have collectively just matched their same level of holdings from exactly 2 years ago. Much has changed since then, including a rise in Bitcoin's market value by +226%.
— Santiment (@santimentfeed) June 17, 2024
Many believe that FTX was successfully suppressing cryptocurrency prices… pic.twitter.com/O90gxrKy8N
While Ethereum and Tether are seeing a rise in exchange holdings, the overall risk of a sudden selloff in the cryptocurrency market decreases when the available supply of Bitcoin for sale is limited. These market conditions help to bolster investor confidence.
Bitcoin's Price Recovery
Bitcoin's price has rebounded as the number of BTC whale wallets continues to grow.
The cryptocurrency experienced a steady decline starting from October 1, 2021, when it peaked at $61,000.
Despite a brief upturn from January to March 2022, reaching $45,000, Bitcoin's price dropped below $17,000 by December 1, 2022, and struggled to recover for most of 2023.
The price of Bitcoin has experienced significant momentum this year, reaching an unprecedented high.
Despite ongoing volatility, Bitcoin has consistently surpassed the $70,000 mark. Various factors, such as favorable regulatory adjustments, have played a role in driving this pattern.
The authorization of spot Bitcoin ETFs has heightened interest and investment in Bitcoin from both institutional and retail investors, fostering a sense of assurance among major investors.
The market was significantly impacted by the collapse of FTX in November 2022, according to a tweet by Santiment.
Analysts suggest that FTX was trying to artificially lower cryptocurrency prices in the latter part of 2022.
Caroline Ellison, the former CEO of FTX-associated Alameda Research, testified during the FTX trial about allegations of manipulating the price of Bitcoin.
The testimony indicated that Sam Bankman-Fried (SBF) actively sought to offload Bitcoin to keep its price under $20,000.
Nonetheless, FTX's influence was not strong enough to control the vast Bitcoin market, which had a market capitalization of hundreds of billions of dollars.
Nevertheless, this attempted price manipulation could have had significant repercussions for the cryptocurrency market and the price of Bitcoin.
Since the collapse of FTX, there has been a clear correlation between the number of whale wallets and Bitcoin’s market value.
This relationship shows the impact of BTC whale wallets on Bitcoin whale activity and the broader cryptocurrency market.
More so, the increase in BTC whale wallets holding 10 or more BTC is a key indicator of market sentiment.